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Springsteen Music Company earned 820 million last year and paid out 20 percent of earnings in dividends. By how much did the companys retained earnings increase?
Wiki User
∙ 14y ago
I think you would take $820 x .20 = $164.00 Than you would take 820 - 164 = $656 in retained earnings....but I'm not positive
Wiki User
∙ 14y ago
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How do dividends and earnings and profits relate?
Dividends, profit and earnings are related as if there is increase in earnings then there is possibly increase in profit as well as increase in dividend amount.
If a company earned 820 million last year and paid out 20 percent of earnings in dividends by how much did the companys retained earnings increase?
Company's retained earnings increased by 80% of last year profit that is (820 million * 80%) 656 million.
How can a company increase equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
Which accounts are closed in the closing entries?
Closing entries close out your temporary or "income statement" accounts, as well as your dividends paid account. All of your revenue accounts increase your retained earnings, expense accounts decrease retained earnings, and dividends paid decrease retained earnings.
ABC company earned 900 million last year and paid out 30 percent of earnings in dividends how much did the company's retained earnings increase?
630M 900,000,000 / 30%
How can a company increase stockholders equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
Can you debit asset and credit Retained earnings?
Assets are increased with a debit and decreased by a credit. Retained earnings is a credit, as they are an owners equity account and increase with credit.Retained earnings is what a company has after all expenses and dividends (if applicable) are paid. Retained earnings is shown on the Statement of Retained Earnings and is a credit which increases OE.
Is a declaration of dividends reported on a statement of cash flows?
The answer is no since there is no actual cash outflow at declaration date. Journal Entry at Declaration Date: Dr. Dividends/Retained Earnings xxx Cr. Dividends Payable xxx If you will prepare the cash flow statement using the indirect method, try to imagine the "Dividends" account as if an expense/nominal account. Start first with the net income, assuming only dividends is your transaction during the month... Net Loss (Dividends) (XXX) Increase in liability (dividends payable) XXX The impact is zero 0 *Rule is increase in asset (-), increase in liability (+) for the indirect method of cash flow statement.
What happens to dividends when a company does well?
The dividends increase.
Is an Increase in Dividends a credit or debit?
Dividends are increased with debits.
Dividend account is treated as either asset account liability account or expense account?
Hi, Dividends are paid out of retained earnings (part of Capital) therefore I think Dividends can not be treated as an expense (the prudence being increase in Capital can not be treated as Revenue thats Cash generation while dividends are Surplus appropriation). regards, Zeeshan
How you contribute to companys growth?
By doing things that increase profits on the business you have. Efficiency Increase earnings by increasing sales. Using profits to expand business: like buy anoter truck or open another store or enlarge. Use new capital to expand like number two.
